Family Business Management Research Articles

Editorial: Literature reviews as a research methodology in family business management

Editorial: Literature reviews as a research methodology in family business management

Correction: Exploring strategic corporate sustainability management in family businesses: a systematic literature review

Correction: Exploring strategic corporate sustainability management in family businesses: a systematic literature review

Tacit knowledge sharing in a Lebanese family business: the influence of organizational structure and tie strength

PurposeThis study explores the influence of organizational structure on relationship formation and tacit knowledge sharing within a family business context.Design/methodology/approachUtilizing a single case study approach, data were collected through interviews and questionnaires from 12 participants at a family-owned advertising and communication firm in Beirut, Lebanon.FindingsThe research highlights the critical role of organizational structure in enhancing organizational effectiveness through knowledge transfer. It underscores how both intraorganizational and interorganizational ties influence knowledge sharing processes and demonstrates the varying impacts of tie strength on tacit knowledge distribution.Originality/valueThis paper contributes to the literature by examining the interdependence between organizational structure, tacit knowledge transfer and tie strength in family businesses. By analyzing these elements across internal and external boundaries, the study offers a fresh perspective on network dynamics. The research highlights that traditional definitions of network ties may not fully capture the unique environment of family firms, where structural nuances impact knowledge sharing and performance. Practically, the findings provide actionable insights for managers to design organizational structures that optimize tacit knowledge flow, fostering innovation and competitiveness. This work challenges existing frameworks and offers guidance for improving knowledge management in family businesses, supporting sustainable growth and success.

The present and future of micro, small, and medium enterprises from a holistic perspective

The study of micro, small, and medium enterprises (msmes) reveals a significant het-erogeneity in approaches, reflected in multiple perspectives such as social, administra-tive, economic, among others. This diversity has driven the application of a wide range of techniques and methodologies, from qualitative research to quantitative studies. Research on msmes in a post-pandemic scenario is multidisciplinary and adaptable to the complexities of the sector, enriching our current and future understanding of these enterprises. Furthermore, the global perspective of business internationalization stands out in a context of value chain integration and nearshoring, while local issues such as family business management and support for social enterprises are also crucial for their development. This duality highlights the need for ongoing dialogue among different academic studies on msmes to effectively address the challenges and oppor-tunities in this constantly evolving sector.

The impact of entrepreneurs’ wives participating in corporate management on company risk-taking

To investigate the influence of spouses of business leaders on corporate decision-making behavior, we use data from 2003 to 2019 from Chinese listed family-controlled companies to examine the impact of entrepreneurs’ wives participating in corporate management on the risk-taking of family businesses. We found that entrepreneurs’ wives participating in company management significantly reduce the risk taking of family businesses, particularly when the wife is a shareholder in the company. Additionally, the wife’s age, level of education, and professional experience also affect her attitude and behavior toward participating in company management. When the wife is older and has a higher degree of education, the risk taking of the enterprise decreases. However, the wife’s rich professional experience can mitigate female conservatism and increase the company’s risk taking. Our research has implications for understanding gender differences in the context of the extension of marital power of Chinese entrepreneurs’ wives from the family to corporate decision-making and risk preferences. This helps to deepen our understanding of the role and status of women in China’s family business management.

Sustaining Family Business: Unveiling the Resilience of Majuli Potters in Assam, India

The Kumars of Salmora village in the south-eastern part of Majuli, Assam, India, are an example of a family managed business of handcrafting river clay pots. Salmora became the Kumhar village as a result of clay, which became the primary reason for the settlement of potters in the area. The hand-beaten pottery is a cottage industry of Majuli and has been passed down through generations. Currently, the policy restrictions and the dying art form have made people think about how to sustain the handicraft, their livelihoods woven around this art form, and continue their passion/skill in the given challenging situation. This makes it interesting to adopt the case research method to examine the struggle of small businesses to sustain their livelihoods, on the one hand, and the limited alternative sources of livelihood, on the other hand, thus making the survival and sustenance of the family business a challenge, where pottery was their family business for generations. The case discussion revolves around the problems, concerns and causes for the deterioration of the art forms and highlights the issues and challenges. It contributes to the resources in the emerging family business management literature and also the family businesses to strategise in similar contexts.

Dancing with Change: A Conceptual Analysis of How Family Businesses Embrace Product Development Management

Understanding product development management is crucial, particularly within the context of family businesses, which are renowned for their resistance to change. Family firms demonstrate a paradox in innovation: while inclined toward calculated risk-taking, they often invest less in R&D compared with non-family businesses. This article explores the evolving landscape of product development management literature related to family businesses. It achieves this by meticulously examining pertinent scholarly works. Conducting a systematic review focused on family businesses’ product development management practices. This article poses the following fundamental question: What prior research has delved into the intersection of family businesses and product development management? The authors adopted the updated Preferred Reporting Items for Systematic Review and Meta-Analyses (PRISMA) reporting guidelines to ensure transparency and completeness in their systematic literature review. The research process hinges on accessing academic databases housing peer-reviewed journals, which initially yielded 955 articles. Through a series of discerning study selection phases, this number was pruned down to 68 articles eligible for further assessment. Ultimately, this study incorporates insights from 22 articles. Within the domain of product development management, the responsibility is typically divided among three key parties: marketing, design, and manufacturing. Notably, the findings underscore a predominant emphasis on the marketing perspective in the existing literature. Consequently, this article calls for future research endeavors to delve into the roles of design and manufacturing in the context of family business and product development management.

Fair play in family firms: examining the perceived justice of performance management systems

PurposeThis study examines the intricate relationship between family influence and perceived justice in performance management systems within family firms. Recognizing the unique dynamics that family ownership brings to human resource practices, the research aims to delineate how family presence affects both the process and the perception of fairness in performance evaluations.Design/methodology/approachUsing a conceptual framework, the research adopts a dual-method approach, combining a comprehensive literature review with theoretical modeling. The study synthesizes existing research and theoretical insights to explore the effects of family influence on the perceived fairness of performance management practices.FindingsThe findings reveal that family influence profoundly shapes fairness perceptions in performance management, impacting family and non-family employees. It affects systems' design, implementation and reception, with mechanisms including resource distribution and criteria alignment. Specifically, family influence molds fairness perceptions within the performance management process, enhancing organizational performance and fostering trust in family businesses, thus supporting sustainable growth.Originality/valueThis study contributes to the family business and human resource management literature by providing a nuanced understanding of how family dynamics influence perceptions of justice in performance management. It underscores the dual role of family influence in enhancing and complicating fairness perceptions, thus offering a balanced view that can inform academic research and practical HR management in family firms.

Family firm succession and corporate philanthropy: evidence based on internal legitimacy and external relationship-specific assets

ABSTRACT Succession is a vital issue in family-business management. Drawing on legitimacy theory and social resource theory, we investigate the impact of family firm succession on corporate philanthropy activities. Using a sample of Chinese firms, we find that family succession significantly increases the level of corporate philanthropy, particularly for firms with great internal legitimacy threats and external relationship-specific asset dissipation. Moreover, succession firms with high corporate philanthropy experience an increase in future performance. Our evidence suggests that second-generation successors tend to take corporate philanthropy activities as part of their strategy to mitigate internal legitimacy threats and external relationship-specific asset dissipation in the succession process. Our results carry important implications for family firms that are concerned about succession in developing countries.

Exploring strategic corporate sustainability management in family businesses: A systematic literature review

AbstractThe escalating demands from legislative authorities and stakeholders for companies to adopt corporate sustainability measures underscore the growing importance of strategic sustainability management. Despite the efforts made by companies in this domain, the strategic management of sustainability in family businesses remains an under-researched area. To address this gap, we conducted a systematic literature review covering the period from 2006 to 2022, on the topic of strategic sustainability management in family businesses. Our investigation encompasses a content analysis of 98 relevant studies. Our research question is: “What aspects are taken into account by family businesses in their corporate sustainability strategies?” We tackle this issue through a methodological triangulation of qualitative and quantitative methods. Our results yield three clusters of strategies for corporate sustainability in family businesses: (1) Family values and succession planning; Stakeholder relations and communication; (2) Risk taking, Inventions, and Technologies; and (3) Entrepreneurship and Intrapreneurship. In addition, we systematically present a range of descriptive indicators, including the research methodologies applied and the geographic focus of the published literature. This research contributes significant insights for scholars and practitioners alike, providing valuable guidance in this field. Moreover, our study paves the way for further investigations into the strategies that influence sustainability within the context of family businesses. By shedding light on this critical area, we aim to foster a more sustainable and informed approach to corporate practices among family-owned enterprises.

Scientometric Analysis of Socioemotional Wealth, Innovation, and Family Businesses: Dynamics of Their Interrelationship

This study presents a scientometric analysis of the interrelationship between socioemotional wealth, innovation, and family businesses, based on 298 articles published between 1975 and 2022. Grounded in the theory of socioemotional wealth, it investigates how emotional and social resources within family businesses influence innovation and, consequently, business success. The methodology includes statistical and graphical analysis to identify publication trends, collaboration networks, and key themes. Results reveal a significant increase in recent academic production, highlighting the growing relevance of these concepts. Four thematic clusters are identified, emphasizing the importance of socioemotional wealth and innovation in the management of family businesses, providing a solid foundation for future research and business practices.

ETHICAL LEADERSHIP IN FAMILY BUSINESS IN THE AGE OF DIGITAL TRANSFORMATION

Family firms have long been a mainstay of the world economy because of their distinctive combination of custom, long-term vision, and close-knit ownership structures. But these well-established businesses face a difficult battle from the digital revolution. In order to be competitive, family companies need to embrace digital transformation as technology redefines customer behaviour and changes entire industries. The ethical leadership required for this transformation journey must strike a balance between the demands of a fast evolving digital landscape and the family's core values. Families-run enterprises, the foundation of many economies, are at a crossroads. The digital era, characterized by swift technical progress and changing customer needs, demands a change to guarantee their sustained prosperity. Family-owned businesses have particular difficulties as a result of this shift since they have to balance their enduring traditions and values with the needs of the digital age. It becomes clear that ethical leadership is essential for negotiating this challenging environment. It investigates the complex interrelationships among family companies, digital revolution, and ethical leadership. Family businesses, with its unique fusion of agility and tradition, find themselves at a turning point in the digital age. This shift calls for a fresh emphasis on ethical leadership and offers both opportunities and challenges. We look at how ethical decision-making in the digital sphere might be guided by fundamental family business principles. This entails dealing with concerns including cybersecurity, algorithmic bias, and data privacy. The study goes on to discuss tactics for guaranteeing accountability among all parties involved, encouraging openness, and cultivating an ethical culture within the family business. Family businesses may secure long-term sustainability, bolster their competitive advantage, and cultivate trust with clients and staff by employing ethical leadership in the digital era. Keywords: Family Business Management, Ethical Leadership, Family Business, Ethics, Digital Transformation, etc

Manager's Decision-Making Styles: A Case Study On Family Enterprises

The personality traits of the managers, their perception styles, management approaches and the way they evaluate the events can affect their decision-making styles. However, it is known that managers generally prefer one of the intuitive or rational decision forms in the management process. This study aimed to examine managers' decision-making behaviors within the rationality and heuristics framework. The research is designed as a case study, one of the qualitative research designs, as it aims to examine the decision-making styles of the managers in family businesses and which rational or intuitive decision-making style they prefer. The research sample was determined according to the purposive sampling technique and includes 19 family business managers. Research data were collected from 19 family business managers operating in different fields with the help of a semi-structured interview form. The collected data were analyzed according to qualitative content analysis. According to the research findings, managers use all rational, limited rational or intuitive decision-making types in their decision processes. Participants stated that the conjuncture and their way of evaluating events determine the decision-making process. The research results show that perceiving and evaluating the conditions in the decision-making process affects the decision-making process. This result shows that decisions are made depending on the perception of events and personality traits. This situation is critical because it shows that decisions are made according to factual/rational processes and subjective and perceptual processes

Navigating Crisis: Strategic Adaptations in Family Businesses Amid Economic Uncertainty

This research delves into the strategic adaptations made by family businesses to navigate crises amidst economic uncertainty. Family businesses represent a significant portion of the global economy and face unique challenges during periods of economic instability. Through a comprehensive review of academic literature, case studies, and expert insights, this study identifies key strategies employed by family businesses to withstand turbulent economic conditions. The findings highlight the critical role of clear communication and transparent decision-making processes in ensuring business resilience during crises. Family businesses that prioritize open dialogue among stakeholders are better equipped to respond effectively to challenges and maintain continuity. Moreover, flexibility within business models emerges as essential for adapting to rapidly changing market dynamics. Family businesses often leverage their inherent strengths, such as strong relationships with customers and communities, to navigate crises successfully. Prudent financial planning and risk management are identified as fundamental for safeguarding the financial stability of family businesses amidst economic uncertainty. Effective management of resources and proactive risk mitigation strategies enable businesses to weather downturns and position themselves for recovery. Additionally, the study emphasizes the importance of maintaining a long-term perspective and fostering family unity during crises. Family businesses that prioritize cohesion and collaboration among family members demonstrate greater resilience and are more likely to emerge stronger from adversity. By synthesizing these insights, this research provides valuable guidance for family business owners, managers, and policymakers facing economic uncertainty.

THE RECEPTIVENESS PUZZLE: UNDERSTANDING WHY SMALL FAMILY BUSINESSES STRUGGLE WITH ACTIVITY-BASED COSTING ADOPTION

This study examines the challenges associated with the adoption of activity-based costing (ABC) in a small family business in a less developed country. Through a case study of PT XYZ, a logistic company, the study found that technical factors, including unpredictable customer requests, varying duration of activities, and uncertainty around distance and fuel consumption for each truck, make adopting the ABC method challenging. Organizational factors, such as a top-down hierarchy and the negative perception of the owner affecting the rest of the hierarchy, also contribute to the non-acceptance of ABC. Additionally, key agents within the company did not demonstrate enthusiasm toward changes. The cultural and contextual factors and unique characteristics of small family businesses further make them less receptive to adopting new ideas or changes, including the ABC method. This study offers practical implications for introducing changes, such as improving data collection processes, establishing better communication channels with family business owners, and seeking external expertise or advice from professionals with experience in family business management. The study expands the current discussion on ABC implementation and contributes to the family business literature by linking family business characteristics with the adoption of the ABC method.

Editorial: Theory development in family business management studies

Editorial: Theory development in family business management studies

Nurturing family business resilience through strategic supply chain management

PurposeThe study aspires to enhance comprehension of the intricate interplay between supply chain management (SCM) and resilience in family businesses, thereby offering valuable insights to managers and policymakers endeavouring to foster resilience in uncertain environments.Design/methodology/approachCommencing from the premise that family businesses (FBs) prioritize the preservation of socio-emotional wealth (SEW) when formulating strategic decisions, this study endeavours to advance understanding of supply chain practices adopted by FBs and their direct impact on resilience during crisis situations or economically challenging periods. Through an exploratory case study of nine FBs, the present research reveals four pivotal strategies in SCM that contribute to their resilience: (i) reorganization of inventory management; (ii) cultivating close relationships with suppliers; (iii) emphasizing product quality and customer retention; and (iv) implementing cost reduction measures to bolster resilience. The aim of the study is to provide an in-depth understanding of the intricate interplay between SCM and resilience in FBs, thereby offering valuable insights to managers and policymakers endeavouring to foster resilience in uncertain environments.FindingsOur approach offers a theoretical framework for SCM aligned with prior research on the interplay between characteristics of family businesses and resilience strategies. Furthermore, this paper illustrates how factors such as the emphasis on high-quality products and services by family businesses contribute to achieving non-economic objectives that owners adopt to reconcile family and business needs, creating intrinsic added value for the company. It reveals various challenges in SCM, including inventory organization changes, supplier closures and the significance of customer retention. Family businesses are implementing product and technology enhancements and leveraging digitization to enhance supply chain processes.Originality/valueThis paper contributes significantly to the field of FBs by highlighting the crucial role of SCM in enhancing business resilience during crises. It empirically examines how the SEW characteristics of FBs influence the reconfiguration of their supply chains to enhance resilience, presenting a theoretical model for this context. Our theoretical framework employs an SEW perspective to elucidate how FBs respond to the challenges posed by the COVID-19 pandemic by adapting their SCM processes to safeguard their social and emotional legitimacy, organizational visibility and reputation. These adaptations gain particular relevance during crises or turbulent conditions, potentially leading to alterations in how FBs formulate their supply chain strategies and manage supply chain-related processes.

Exploring Challenges Forefront to Family Business Leaders: A Perspective of Family Business Owners

Family businesses, owing to their unique blend of family dynamics and business operations, often face distinctive hurdles that can significantly impact their sustainability and growth. This qualitative study delves into the multifaceted challenges that confront family business leaders, as seen through the eyes of family business owners, which is a missing aspect in the extant literature database. Through in-depth interviews and thematic analysis, this study aims to shed light on the key challenges family business leaders encounter. The findings of the study reveal that the family business leaders have challenges related to the succession planning, financial management, conflict resolution, communication breakdown, governance, HRM, and the evolving business environment in the day-to-day business operation. These findings further echoed the need for a personalized approach and support systems to face the challenges and to be successful in the long run. These results not only contribute to the existing literature related to the management of family business, but also provide a very practical use to the practitioners in increasing the strength of both the family and business while operating within the context with such complexity.

Family Business Leadership Governance: The integrated practices of ASLI framework

This paper discussed Family Business Leadership Governance (FBLG) practices: the approach to leading the family businesses, family business strategy, the structure of family business leadership, and family constitution & succession planning. These practices are significant for any family business and must be developed and executed by the Chief Family Business Officer (CFBO) to ensure the proper governance of family business leaders. Further, this paper will introduce the ASLI framework to work on each family business leadership practice. These practices are also interconnected with each other. This framework can be presented as new knowledge in family business management. If the family businesses apply this framework formally, it will play an imperative role in their sustainability and growth.

Editorial: Developing a research question in family business management research

Editorial: Developing a research question in family business management research